News

US Fed Hikes Rates by 25bp to 3.75%-4% (September 16, 2026)

The US Federal Reserve raised its target federal funds rate by 25 basis points to 3.75%-4% on Sept 16, 2026 — the first hike since July 2023 — to address persistent inflation.

TL;DR

The US Federal Reserve raised its target federal funds rate by 25 basis points to 3.75%-4% on September 16, 2026, marking its first rate hike since July 2023, in response to persistent inflation.

Event overview ​

According to Xinhua News Agency, the US Federal Reserve announced on September 16, 2026 (Wednesday, local time) a 25-basis-point increase in its target federal funds rate, to a range of 3.75%-4%, to address persistent inflation. This is the Fed's first rate hike since July 2023.

Key facts ​

  • Hike size: 25 basis points.
  • New range: target federal funds rate raised to 3.75%-4%.
  • Date: September 16, 2026 (Wednesday, Eastern Time), decided by the Federal Open Market Committee (FOMC).
  • Milestone: first rate hike since July 2023.
  • Official rationale: the FOMC statement said economic activity is expanding at a solid pace, domestic spending has been resilient, productivity growth is strong and capital investment robust, job gains have kept pace with the workforce, and the unemployment rate has changed little; uncertainty remains elevated partly due to geopolitical developments, so the Committee raised rates to address persistent inflation.

Official sources ​